Tesla Warns Model 3 Tax Credit Might Be Reduced After End Of Year
Portfolio Pulse from Anan Ashraf
Tesla Inc has warned that the federal EV tax credit on its Model 3 might be reduced after December 31. This comes after the U.S. Department of Energy confirmed last month that all versions of the Model 3 would be eligible for a $7,500 tax credit. However, due to fresh guidance on battery sourcing, some versions of the Model 3 were only qualified for a tax credit of $3,750.
July 12, 2023 | 6:56 am
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The potential reduction in the federal EV tax credit for Tesla's Model 3 could impact the affordability of the vehicle for consumers, potentially affecting Tesla's sales and stock price.
The federal EV tax credit has been a significant incentive for consumers to purchase electric vehicles. A reduction in this credit could make Tesla's Model 3 less affordable, potentially leading to a decrease in sales. This could negatively impact Tesla's revenues and subsequently its stock price.
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